Czech gross domestic product (GDP) increased by 1.3% year-on-year and by 0.3% quarter-on-quarter in the third quarter of this year, according to the preliminary estimate published by the Czech Statistical Office (CZSO).

“The y/y growth of the economy was mainly contributed to by the final consumption expenditure of households, which has been continually increasing since the beginning of the year,” commented Vladimir Kermiet of CZSO.

“Final consumption expenditure of the general government and external demand had a positive contribution too,” Kermiet also stated, adding that “gross capital formation had a negative influence". 

Local analysts surveyed by Czech Television (CT) agreed that the revival of the Czech economy still has not reached the level the market hopes for.

“If we take into account the very weak output of German industry [Czechia’s key export market] and the September floods, then the overall output of the Czech economy is not that bad,” an analyst at the Akcenta consulting company, Miroslav Novak, was quoted as saying by CT.

“It cannot be expected that before the end of the year, the development of the Czech economy would significantly surpass the estimated annual pace of growth of around 1%,” Dominik Kohut of PW said.

The y/y growth of the gross value added was contributed to by developments in trade, transportation, accommodation and food service activities, while a slump continued in industry. The q/q growth was driven mainly by manufacturing, while construction also contributed positively.       

Employment increased by 0.5% y/y and stayed unchanged q/q, CZSO also reported.